UPDATE: JP Morgan Maintains Sandridge at Underweight on TPG-Axon Deal
In a report published by JP Morgan, analyst Joseph Allman maintained an Underweight rating on Sandridge Energy (NYSE: SD). JP Morgan reported that, “On Wednesday after market close, SD announced a settlement with TPG-Axon. The stock might react positively over the near term due to market optimism about possible changes ahead for the company. We expect that the board and management will be successful in making some changes. However, we think SD's high debt level and overhead expenses, even after possible spending and cost reductions, overwhelm the value of the assets.”
Shares of Sandridge closed at $5.85 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.